MIR-41┃Add pyUSD as paUSD collateral on Ethereum


This proposal aims to add pyUSD as paUSD collateral on Ethereum.


PayPal USD is a stablecoin that’s fully backed by US dollar deposits, US treasuries, and similar cash equivalents. You can buy and sell 1 PYUSD for 1 USD on PayPal.

PayPal USD is issued by Paxos Trust Company, LLC (Paxos). PayPal and Paxos are committed to ensuring the public availability of reports on the PayPal USD reserve assets. To that end, Paxos monthly self-reports the composition of the reserve asset portfolio after each month’s end, and monthly attestation reports are also issued by an independent third-party accounting firm. These monthly reports can be found on Paxos’ PayPal USD Transparency page.

Here’s the documentation about pyUSD.

Project Presentation:

Protocol name : PayPal USD
Token requested : pyUSD
Token contract address : 0x6c3ea9036406852006290770bedfcaba0e23a0e8
Audit(s) links : pyusd-contract/audit-reports/Trail_of_Bits_Audit_Report.pdf at master · paxosglobal/pyusd-contract · GitHub
Chain requested : Ethereum
Relation with the project : none.
Website: PayPal Stablecoin | US Dollar Cryptocurrency | PayPal US
Github: GitHub - paxosglobal/pyusd-contract: PYUSD stablecoin smart contract repo


Token metrics & Risk assessment:

  • Smart Contract risk: C+

The pyUSD has been audited by Trail Of Bits. There are admin functions, but as USDP, the admin/issuer is Paxos, which is a regulated entity. There are currently 5k holders on Ethereum.

  • Counterparty risk: B

pyUSD is a USD-pegged stablecoin minted through Paxos. While it’s still young, it has grown to a circulating supply of over $300M with good peg resilience. There are currently 40k transactions on Ethereum.

  • Market Risk: C

pyUSD has a market capitalization of approximately $301M. The average daily trading volume, encompassing both CeFi and DeFi, amounted to $15 million. We consider the market capitalization to be justifiable for listing purposes. Although the relatively modest trading volumes indicate a lack of liquidity in the markets, totaling around $40M, this issue can be mitigated through the implementation of supply caps, debt ceilings, and borrowing limits.

  • Chain Risk : A

Ethereum had 0 outages over the last 6 months. (Ethereum Block Count and Rewards Chart | Etherscan)

  • Liquidity Risk of paUSD on Ethereum: C-

The paUSD/wUSK/USDC pool on Balancer has $245k liquidity composed of 17,8% USDC, 27,67% wUSK and 54,53% paUSD. The paUSD/wUSK pool Uniswap (Bunni) has $17k liquidity.

This provides the following price impact on the following trade sizes:

1000 USDC → paUSD: 0.12%
10000 USDC → paUSD: 0.29%
25000 USDC → paUSD: 0.48%
50000 USDC → paUSD: 0.68%

  • Overall Risk : B

The Overall Risk is the average of the points mentioned above.


  • Human resources: Multisig DAO signers will need to sign and execute transactions to add pyUSD as paUSD collateral on Ethereum.

  • Treasury resources: There is no cost for the treasury to add pyUSD on Ethereum.

Technical implementation:

  1. Set the chainlink oracle related to the pyUSD: pyUSD/USD into PriceFeed Contract

  2. Add pyUSD in the ConfigProvider Contract of PAR with all parameters decided by the Mimo governance.

Voting options:

  • Add pyUSD as paUSD collateral on Ethereum
  • Against pyUSD as paUSD collateral on Ethereum
  • Abstain

Authors: @starny & @Jeanbrasse from MimoLabs

Community poll:

  • Add pyUSD as paUSD collateral on Ethereum
  • Against pyUSD as paUSD collateral on Ethereum
  • Abstain
0 voters
1 Like

The proposal is now live on Snapshot: Snapshot

1 Like

The proposal has been approved by the DAO, result: Snapshot

1 Like